Caffè Nero hires KPMG to negotiate rent cuts

Caffè Nero has reportedly hired KPMG as it looks to negotiate rent cuts and review its property portfolio, Sky News reports.

KPMG is understood to be working with business on a range of possible options, which are likely to include mechanisms that would enable rent cuts and limit store closures.

Before the crisis, the brand was seen to be performing strongly – employing about 5000 people and serving 135 million customers annually – but like many to-go operators, the slow return to offices has had a significant event on its recovery.

One source told Sky that Caffè Nero executives had been engaged in a “constructive dialogue” with landlords, but needed to intensify talks as it seeks to address its fixed cost base.

A spokesperson for the company said: “It has been a difficult period since lockdown measures were introduced by the government and we’re working incredibly hard to navigate our way forward.

“As part of this, we are working closely with advisors to help review our options and assist with our ongoing negotiations with landlords.”

More that 90% of its 660 stores have reopened since June, with about 30 stores remaining closed for the time being.